Can You buy a fraction of a foreign stock in India?


Investing in the stock market has become more accessible and flexible with the concept of fractional shares. While fractional shares are not currently available for trading in Indian stock markets, there are alternative ways for investors in India to explore fractional share ownership. In this article, we will discuss the limitations of buying fractional shares in India and highlight an opportunity for Indian investors to invest in fractional shares of US-based stocks through select brokers.

Limitations of Buying Fractional Shares in India:

  1. Indian Stock Market: As of now, Indian stock markets do not support fractional share trading. Fractional shares are a feature predominantly seen in western stock markets.
  2. Holding Fractional Shares: In certain cases, investors may end up with fractional shares in their DEMAT accounts due to stock splits, bonus shares, or mergers. However, most companies round up fractional shares to the nearest whole number or appoint trustees to buy back fractional shares.

Exploring Fractional Shares of US-based Stocks:

  1. Choose a Broker: Look for a brokerage that provides access to fractional share investing in US-based stocks. Certain brokers offer this facility to investors in India, allowing them to buy fractional shares of popular US companies.
  2. Research and Select Stocks: Identify the US-based stocks you are interested in owning fractional shares of. Companies like Apple, Amazon, and Google are popular choices among investors.
  3. Brokerage Account Setup: Open an account with the chosen brokerage, following their account opening procedures and fulfilling any necessary requirements.
  4. Fractional Share Buying Process: Log in to the broker’s platform and place an order for the desired fraction of shares you wish to purchase. Specify the amount you want to invest, and the broker will calculate the corresponding fraction of shares based on the current share price.

Benefits and Considerations:

  1. Accessibility: Fractional share investing allows investors in India to participate in the ownership of high-value US stocks without needing to invest large sums of money.
  2. Diversification: Investing in fractional shares of US-based companies offers the opportunity to diversify an investment portfolio by including globally recognized brands.
  3. Broker Selection: Before choosing a brokerage to invest in fractional shares of US stocks, carefully research and compare the features, fees, and services provided by different brokers to ensure a suitable investment experience.


While fractional shares are not currently available for trading in Indian stock markets, Indian investors can still explore fractional share ownership by investing in US-based stocks through select brokers. This provides an opportunity to invest in renowned companies without requiring large capital investments. As with any investment decision, it is essential to conduct thorough research, assess risks, and choose a reputable brokerage that aligns with your investment goals. Fractional share investing opens new avenues for Indian investors to participate in the global stock market and diversify their portfolios.